CPI Slowdown Dampens Fed Hike Hopes as AI Stocks Rally

Weaker CPI data reduces rate hike expectations, driving broad gains in AI and semiconductor equities while Bitcoin slips slightly to $63,423.

Woofun AI reports that anticipated CPI deceleration has diminished market expectations for a Federal Reserve rate increase. U.S. equity indices displayed mixed performance, with the Nasdaq advancing 0.54% and the S&P 500 rising 0.26%, while the Dow Jones declined 0.04%. NVIDIA shares climbed 3.03% to $224.09, hitting their highest close since June 2, supported by Goldman Sachs maintaining a "buy" rating with a $285 target. SpaceX stock jumped 9.65% following the announcement of Grok 4.6. Broader AI-related sectors surged, with Nebius up over 34% and CoreWeave rising over 19%. Memory chip makers including SK Hynix and SanDisk gained significantly, alongside optical communications firms like Lumentum. Geopolitical tensions persisted as Trump asserted U.S. control over the Strait of Hormuz, while Iran's Revolutionary Guard warned of threats to global infrastructure. Bitcoin fell 0.19% to trade at $63,423.